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| Silver Bars |
Who cares, you say, backed up with a big yawn, as the stock market toys with new highs almost daily.
Well, if a recent WSJ post means anything, mom-and poppers do.
Mom-and-pop investors are loading up on silver despite a price drop that has left the metal at a four-year low.
The enduring interest can be seen in iShares Silver Trust , the largest exchange-traded fund that buys silver bars and is a popular bet for individual investors. As cash pours in, the ETF has accumulated 345 million ounces of silver, close to a 3½-year high.
From all indications, silver is benefiting from a variety of things like reports the U.S Mint a week ago announced it sold out of one ounce American Eagle silver coins. And October booked the strongest sales of silver coins since the beginning of 2013, the last time the mint apparently sold out it silver coins.
Silver is more a favorite of individual investors for many reasons, not just the price differentials between it and, say, gold.
An ounce of gold costs about 70 times more than an ounce of silver, so even a small investment in silver can buy a relatively large amount of the metal. Some retail investors say they view silver as a bargain after three years of plunging prices at a time when stocks and bonds are hitting new highs.
Gold attracts the much larger players like hedge and big mutual fund that many believe control trading, according to the WSJ. The inverse relation here between the metal making new lows and the world of paper assets hitting new highs apparently is bringing out the contrarian in mom and poppers.
Two other reasons mom and poppers like silver is they tend to be buy and holders, opting for a longer view, using the shinny stuff as insurance against falling paper asset prices. Others see silver as an actual currency since it has been used for that purpose before.
Silver has dropped from around $22 an ounce in January to a recent close of $15.67. Despite the faith of the M&P folks, some observers say silver could hit $8 an ounce before the slide is through.
Two other reasons mom and poppers like silver is they tend to be buy and holders, opting for a longer view, using the shinny stuff as insurance against falling paper asset prices. Others see silver as an actual currency since it has been used for that purpose before.
Silver has dropped from around $22 an ounce in January to a recent close of $15.67. Despite the faith of the M&P folks, some observers say silver could hit $8 an ounce before the slide is through.
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